Apple Kills Off 40GB Apple TV

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Apple has discontinued its 40GB Apple TV set-top box, and has dropped the price on its 160GB device to $229 from $329, MacRumors has spotted. This explains the shortages on the 40GB unit, first noticed earlier this month by Piper Jaffray analyst Gene Munster.

Apple needs to do something with Apple TV, an unpopular digital set-top box that hooks the iTunes store (and your computer’s video library) up to your TV set. Suggestions range from a subscription TV episode service to adding a Blu-ray player to opening the devices’s software up to third-party developers (or any Web video content).

Follow-up: Lower Pricing Won’t Save Apple TV

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